28. September 2023

Bitcoin Could Prosper in U.S. Banking Crisis: Bernstein Urges

• Analysts at Bernstein Private Wealth Manager think the shaking banking system in the United States could benefit bitcoin adoption and potentially increase the price of the asset.
• The experts went further, advising people to invest in BTC, which could soon enter a new bull run due to the shaking condition of traditional finance.
• Weak Banks Could Pump BTC up Analysts Gautam Chhugani and Manas Agrawal believe that numerous bank collapses could push investors away from traditional finance, triggering a mainstream adoption and a new bull run for BTC.

The US Banking Crisis Could Boost Bitcoin Adoption

Analysts at Bernstein Private Wealth Manager have suggested that the weakening banking system in the US may be beneficial for bitcoin adoption, potentially increasing its price. The experts have gone one step further, recommending investment in BTC which is likely to enter a new bull run due to the shaky condition of traditional finance.

Weak Banks Could Push Investors Away From Traditional Finance

Gautam Chhugani and Manas Agrawal are two analysts who believe that multiple bank closures would lead investors away from traditional finance towards crypto assets such as bitcoin. This migration could trigger mainstream acceptance and another bull market for digital currencies.

Banks Shut Down After Revealing Liquidity Difficulties

March saw several banks shut down after disclosing liquidity issues; these included Silvergate Capital, Signature Bank and Silicon Valley Bank (SVB). These events sparked worries about potential contagion within the sector which were worsened when First Republic Bank (one of America’s top 20 largest financial institutions) revealed its own liquidity difficulties recently.

A New Crypto Cycle Could Emerge

The safe haven status created by these events may result in a new crypto cycle where digital wallets act as on-chain savings accounts. This gap between Treasury rates and bank deposit rates will continue to hollow out banks with weak balance sheets leading to increased migration into money markets – all of which could contribute significantly towards mainstream bitcoin adoption.


The current banking crisis has brought attention back onto cryptocurrency solutions with some analysts suggesting it may lead to increased popularity for bitcoin through higher investor demand driven by fear surrounding traditional investments. With trust in financial institutions continuing to decrease, this newfound interest may drive yet another crypto market cycle in 2021 as investors seek safety for their funds elsewhere.